14
Fiscal Policy
Government Budgets
A governments budget is an annual statement of
projected outlays and revenues during the next
year together with the laws and regulations that
support those outlays and revenues.
Fiscal policy is the use of the governme

12
Aggregate Supply and Aggregate
Demand
Aggregate Supply
The aggregate supplyaggregate demand model
enables us to understand three features of
macroeconomic performance:
Growth of potential GDP
Inflation
Business cycle fluctuations
We use the model of

Objectives
11
Unemployment and Inflation
Employment and Wages
Labour Force Survey
The Office for National Statistics conducts a
continuous survey to determine the changing
anatomy of the labour market.
The survey divides the population into two groups:
T